Hotz v. Minyard
304 S.C. 225, 403 S.E.2d 634 (1991)
Minyard owned two car
dealerships, Greenville and Anderson. He had two children, Tommy and
Judy, who worked in the dealerships.
Tommy was mostly in charge
of the Greenville dealership
Judy was mostly in charge of
the Anderson dealership.
Minyard signed a contract
with the car manufacturer that designated Judy as the successor at the
Anderson dealership.
Minyard got his attorney,
Dobson to draw up a will. This will gave various things to various
relatives but split the majority of his estate between the two children.
The will was witnessed by
Minyard's wife and Tommy.
Minyard went back to Dobson
later that afternoon and signed a second will that gave the Greenville
dealership to Tommy outright.
He told Dobson not to
disclose the existence of the second will.
Judy later complained to
Minyard that he was cheating her out of money from the business. Minyard
lied and used the claim that he had left her money in his will as leverage
in negotiating a new contract with her.
Judy asked to see the will, Dobson
showed her the first will, without explaining that it had now been revoked
by subsequent instrument.
Minyard had a stroke and
became mentally incompetent. Judy
cared for his needs while Tommy ran both dealerships. When Judy attempted
to return to work, Tommy had her dropped from the payroll.
Judy claimed that Tommy was
running the Anderson dealership poorly and losing money.
Judy complained and Minyard
(who was better) executed a codicil
that removed Judy from his will entirely.
Judy sued Tommy for tortuous
interference with a contract and other things. She also sued Dobson for
breach of fiduciary duty.
The Trial Judge dismissed all
the complaints in summary judgment. Judy appealed.
Judy argued that Dobson's
deception caused her to not press her claims against Tommy, which gave
him more time to consolidate his position and cause more financial damage
to the Anderson dealership.
The Trial Court found that
Dobson owed no fiduciary duty to Judy because he worked for Minyard, not
her.
The South Carolina Supreme
Court reversed in part.
The South Carolina Supreme
Court found that Dobson did owe a fiduciary duty to Judy.
Turns out, Dobson had been
preparing Judy's taxes for years.
The Court found that Judy's
dealing with Dobson on other matters created a 'special confidence' that
meant Dobson needed to act in good faith.
The Court found that while
Dobson had no duty to disclose the existence of the second will, he did
have a duty to act in good faith and not misrepresent the first will.